Control Pushed UPwards To The World

Mr Bush set precedent.

And then Mr Obaka took the ball and ran, to the geometric tune of billions and trillions of dollars.

When, in truth, all we had to do as a nation was: NOTHING.

Those who would have failed, SHOULD have been allowed to fail. Every bank, every S&L, every investment group, every car company, every public or private group. Every entity deemed "too big to fail." They should have been ALLOWED to fail.

An equilibrium would have been reached, and by this time already.

We would already have been into various actual recovery modes. Instead of the false and artificial indicators held in obeisance now.

Mr Obaka now wants:

The US is preparing to pivot from domestic regulatory reform to a push for a tough new international capital regime after the weekend’s G20 and International Monetary Fund meetings glossed over differences between leading economies.

Tim Geithner, US Treasury secretary, met Mario Draghi, chairman of the Financial Stability Board, on Sunday to discuss the contours of a system that would decide the safety and profitability of banks for decades to come and could eclipse the arguments over bank taxes and regulation.

EDITOR’S CHOICE
In depth: IMF - Apr-21
IMF fails to address exchange rate debate - Apr-24
IMF communiqué in full - Apr-24
Money Supply: Don’t mention the yuan - Apr-24
Nations disagree over IMF bank taxes - Apr-23
Blog: Money Supply - Oct-07

But the different positions of senior central bank and government officials from several countries expressed to the Financial Times on the sidelines of the G20 meetings in Washington suggested that a final international agreement remains a challenge.

The G20 communiqué on Friday said: “We recommitted to developing by end-2010 internationally agreed rules to improve both the quantity and quality of bank capital and to discourage excessive leverage.”

But participants said little time was spent on the issue and that officials were gearing up for a battle at the June meeting over the direction of the new standards, which would prevent banks from relying on short-term funding and disqualify some assets from counting towards core regulatory capital, the highest-quality loss-absorbing part of the capital structure.

The most important fault line runs between a bloc of countries that includes the US, the UK and Switzerland and one that includes Germany, France and Japan.

Let there be no mistake: it is all about control. Of private industry by government. As long as it exists.

BZ